Q&A: Why do people that do home loans get so mad when you shop around?

Question by Fred Garvin: Why do people that do home loans get so mad when you shop around?
I’ve heard a friend of mine go completely nuts every time her customers shop around for home loans. What do these lender expect someone to just trust them when they say. Best answer:

6 Comments

They want your business. Who cares. It’s not just home lenders, it is anyone in sales. We had an Empire sales rep come to the house and he got mad that we wanted another quote from some place else. My now husband was ready to take him out. It was ridiculous. Sales is tough. I don’t agree with how companies pay sales personnel. They create a lot of the problems we customers have.

Most mortgage brokers already work with multiple mortgage providers and plans, so there is no reason to go to more than one – they get mad because those people that shop around are idiots and the broker has put a lot of time into finding the best plan for he customer and wants their business. – going to another broker – that person may wind checking some of the exact same mortgage programs/providers – it’s duplicate work – you’re typically not going to find any deals that much different from the first broker you go to

I do home loans so I can shed some light, (although I don’t go ballistic)- it is a lot of work to give someone a pre-approval- we have to run credit (which we pay for) & figure the debt to income & loan to value etc. Enter all fees etc into a good faith estimate which can mean checking tax rates for your property, getting insurance quotes etc. Its quite a bit of free work for someone who is not “really sure” that they are even ready to buy. We are so busy with the really serious buyers that when you get someone who you see 4 or 5 inquiries from other mortgage companies we know they are just taking up time that we don’t have to spare. Really don’t mind someone shopping- its just a lot of work for nothing. (Just being honest!). I usually tell those people to get me their good faiths & I will see if I can do better.